Question

Leave 'verches Receivables, allowance for doubtful accounts, write-ot and subsequent recovery Loi, 2.3 Outdoor Equipment (OE) sells camping equipment. On December the accounts receivable accent had a balance of $50,000, the bad debe expense account had a balance of 50, and the allowance for dorful accounts had a credit balance of 5.000 Journaliere the remaining journal entries for the 2020 year. Dec 2 Seld tents for $5.000 on account with a cost of $2,500 20 Determined that the total accounts of Rocky Co with an accounts receivable balance of $1.200 and Growe Co with an accounts receivabic balance of $2,500 were collectible and needed to be wines of 13 Unexpectedly received payment from Grouse Ca for 2.500 31 Estimated that 10of accounts receivable recorded to date would be collectible. Required 1. Prepare journal entries to record the transactions. Noliteod of uncollectible accounts for Rocky Cound Grouse Cashould be posted separately 2. Draw and fill in the Taccount for at receivablehad debt expense and allowance for doubtful accounts. Desermine the ending balance for each account

Leave 'verches Receivables, allowance for doubtful accounts, write-ot and subsequent recovery Loi, 2.3 Outdoor Equipment (OE) sells camping equipment. On December the accounts receivable accent had a balance of $50,000, the bad debe expense account had a balance of 50, and the allowance for dorful accounts had a credit balance of 5.000 Journaliere the remaining journal entries for the 2020 year. Dec 2 Seld tents for $5.000 on account with a cost of $2,500 20 Determined that the total accounts of Rocky Co with an accounts receivable balance of $1.200 and Growe Co with an accounts receivabic balance of $2,500 were collectible and needed to be wines of 13 Unexpectedly received payment from Grouse Ca for 2.500 31 Estimated that 10of accounts receivable recorded to date would be collectible. Required 1. Prepare journal entries to record the transactions. Noliteod of uncollectible accounts for Rocky Cound Grouse Cashould be posted separately 2. Draw and fill in the Taccount for at receivablehad debt expense and allowance for doubtful accounts. Desermine the ending balance for each account

Answer 1

1.

Date	Account Titles	Debit	Credit
2-Dec	Accounts Receivable	$          5,000
	Sales Revenue		$          5,000
	Cost of Goods Sold	$          2,500
	Inventory		$          2,500
20-Dec	Allowance for Doubtful accounts	$          3,700
	Accounts Receivable		$          3,700
23-Dec	Accounts Receivable	$          2,500
	Allowance for Doubtful accounts		$          2,500
	Cash	$          2,500
	Accounts Receivable		$          2,500
31-Dec	Bad Debt Expense	$          1,330
	Allowance for Doubtful accounts		$          1,330

2.

Accounts Receivable
Beg Bal	$    50,000
2-Dec	$      5,000	$      3,700	20-Dec
23-Dec	$      2,500	$      2,500	23-Dec
End Bal	$    51,300
Allowance for Doubtful Accounts
		$      5,000	Beg Bal
20-Dec	$      3,700	$      2,500	23-Dec
		$      1,330	31-Dec
		$      5,130
Bad Debt Expense
Beg Bal	$             -
31-Dec	$      1,330
End Bal	$      1,330

If you have any query, kindly comment with your query and please mark thumbs up.